Web3 Suffers $655.61 Million Losses from Security Breaches in H1 2023: Beosin Reports

Web3 Suffers $655.61 Million Losses from Security Breaches in H1 2023: Beosin Reports

Altcoin news, News

In the first half of 2023, the Web3 ecosystem encountered significant challenges as security breaches, hacks, phishing scams, and rug pulls resulted in a staggering total loss of $655.61 million. These concerning statistics were revealed in a report by cybersecurity firm Beosin.

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Out of the recorded incidents, a total of 108 attacks were reported, leading to losses amounting to $471.43 million. Phishing scams, a commonly employed tactic by malicious actors, contributed an additional $108 million to the overall losses.

Moreover, rug pulls, fraudulent activities within decentralized finance (DeFi), accounted for $75.87 million in stolen funds.

Despite the substantial losses, there is a glimmer of hope for the Web3 community. The total loss from attacks in H1 2023 significantly decreased compared to previous years. In H1 2022, losses amounted to approximately $1.91 billion, and in H2 2022, they reached around $1.69 billion. However, in H1 2023, the value dropped to $470 million, indicating a positive trend in mitigating security risks.

Analyzing the distribution of loss amounts in hacks, one incident accounted for a loss exceeding $100 million, while seven incidents resulted in losses ranging from $10 million to $100 million. Additionally, 23 incidents led to losses ranging from $1 million to $10 million. These figures highlight the varying scale and impact of security breaches within the Web3 ecosystem.

Encouragingly, approximately $215 million worth of stolen assets were successfully recovered during H1 2023, showcasing a significant improvement compared to the previous year when only 8% of stolen assets were reclaimed.

However, it is concerning to note that $113 million of stolen assets were transferred to mixers, with $45.38 million directed into Tornado Cash and $68.14 million into other mixers.

As the Web3 revolutionizes various industries, it is crucial for stakeholders, including developers, users, and regulatory bodies, to maintain vigilance and implement robust security measures to safeguard the ecosystem.

Compiled by Coinbold

Beosin, hack, report, TornadoCash, Web3